Grayscale Launches Proof-of-Stake Investment Fund for Wealthy Individuals

• The fund is reserved for authorized investors who have a net worth of $2.2 million or more.
• Grayscale states that the fund will seek to maximize revenue via the staking incentives.

In a post on X (previously Twitter) on Friday, Grayscale announced the establishment of a “dynamic income fund” that would invest in proof-of-stake tokens. The fund, which goes by the ticker symbol GDIF, is reserved for authorized investors who have a net worth of $2.2 million or more, according to Grayscale’s description.

Moreover, Grayscale said that GDIF would be their “first actively managed investment product.” A statement from Grayscale states that the financial instrument will seek to maximize revenue via the staking incentives linked to proof-of-stake (PoS) digital assets. Staking and unstaking of various tokens will be handled by the fund, which would then distribute rewards to its investors. Grayscale described the operation of GDIF in its disclosures.

The firm stated:

“Interests in GDIF have not been, and will not be, registered under the U.S. Securities Act of 1933 … or any state or other securities laws.”

Not Under Investment Company Act

The U.S Securities and Exchange Commission (SEC) has authorized and is overseeing Grayscale’s spot bitcoin ETF, which enables anyone to get exposure to the cryptocurrency without actually buying it.

According to The Block Data Dashboard, the ETF has seen outflows of billions of dollars since it started trading in January and is still the biggest in terms of assets under management. Also, Grayscale is the second most actively traded bitcoin ETF, behind only BlackRock’s spot bitcoin ETF.

Grayscale’s disclosures also stated:

The fund “will not be registered as an investment company under the U.S. Investment Company Act of 1940 … and will not be required to adhere to certain restrictions and requirements under the Investment Company Act, and investors will not be afforded the protections of the Investment Company Act.”

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